Kuala lumpur: The telecommunications industry’s average revenue per user (ARPU) experienced a 0.8% decline quarter-on-quarter (q-o-q) in the second quarter of 2025 (2Q 2025), with expectations of further decreases in the second half of the year (2H 2025).

According to BERNAMA News Agency, CIMB Securities Sdn Bhd attributed this downturn primarily to bundled discounts and promotional rebates that service providers offered to both acquire and retain customers. The firm suggested that ARPU might stabilize after this period because most subscribers would have renewed their contracts according to new offers introduced since the second half of 2023. This shift follows the implementation of the mandatory standard on access pricing on March 1, 2023.

CIMB Securities noted that most telecommunications companies reported earnings that were broadly in line with expectations. However, Maxis Bhd exceeded forecasts, while CelcomDigi Bhd (CDB) underperformed. Maxis’ mobile revenue market share (RMS) increased by 0.3 percentage points to 42.7%, whereas CDB’s share decreased by the same margin to 57.3%.

The report highlighted that fixed services revenue underperformed compared to mobile services in 2025, declining by 2.5% year-on-year (y-o-y) due solely to Telekom Malaysia Bhd (TM). Competition in the fibre broadband sector remained intense, according to CIMB Securities.

In terms of earnings, Maxis saw a 7% q-o-q rise in core earnings per share (EPS), bolstered by increased device-related income and lower effective tax rates. Conversely, CDB’s core EPS dropped by 2% q-o-q, while TM’s EPS declined by 4.5% due to reduced one-off income and increased depreciation.

CIMB Securities maintained its ‘Overweight’ rating on the telecommunications sector, signaling continued confidence in the industry’s prospects despite the recent challenges.